Coronavirus Updates: Impact on the Diamond Trade

Timeline of Covid-19-related news affecting the industry

RAPAPORT... The Covid-19 pandemic that has swept the globe has had a notable impact on the diamond industry, with new developments unfolding every day. Here, we present a one-stop, running news feed on industry events impacted by the virus.

June 5

Alrosa says it expects diamond demand to rise by July or August, noting that diamond-jewelry sales were already “bouncing back” in China and other Asian markets.

June 2

• The Women’s Jewelry Association (WJA) has cancelled its live 2020 Awards for Excellence gala, which had been scheduled for July 27. Instead, the WJA will hold on online event and keynote presentation on the same day.

• De Beers Jewellers has reopened its stores in Houston, Texas, and in Bal Harbour, Florida. Its stores in London, Paris, New York, Russia and Kazakhstan remain closed.

June 1

• The Gemological Institute of America (GIA) stops accepting applications for free Essentials courses after more than 10,000 people sign up. The program was full by May 20, prompting the organization to close the offer.

• De Beers to make sight goods available for viewing in locations outside Botswana, starting with upcoming sale scheduled for June 15 to 19.

• Dubai Diamond Exchange preparing to be fully operational from June 14 in line with guidance from authorities.

May 29

• Alrosa allows customers to defer all rough purchases at June sale, maintaining flexible policy for third month in a row. Clients can still buy remotely if they wish.

• Petra Diamonds reports rough prices down 27% in March and April compared with February; cancels May tender due to weak demand.

• Christie’s to hold rescheduled Magnificent Jewels sales in Hong Kong on July 9, Geneva on July 22 and New York on July 29.

• Texas-based retailer James Avery Artisan Jewelry reopens 90 of its 92 stores, with sanitization and social distancing in place, and associates undergoing daily health screenings and wearing face masks. Company also resumes manufacturing at facilities in Kerrville, Comfort and Hondo.

May 28

• The International Gemological Institute (IGI) reopens several of its offices around the world. Its centers in Antwerp, Hong Kong, Shanghai, Shenzhen, Bangkok, Tel Aviv, Dubai and Japan are now operational. It is carrying out certain remote services at its New York office, while operations at its locations in India vary according to needs and government instructions.

• A’Star Jewellery, the jewelry division of diamond manufacturer Asian Star, reopens its factory in the SEEPZ special economic zone in Mumbai with a reduced workforce and health provisions in place.

May 27

• Forevermark reports good recovery among retail partners in China, with stable average selling prices and a doubling of conversion rates; plans to expand bridal collection and broaden e-commerce product offering.

• A Massachusetts jeweler is leading a petition calling on state authorities to allow jewelry retailers to reopen sooner than currently planned. Matt Khatib, president of M.K. Benatti Jewelers in Newburyport, is urging Governor Charlie Baker to include jewelry retailers in phase one of the state’s reopening plan, which at present only allows curbside pickup or remote fulfilment of orders. Physical stores cannot open until phase two, which is slated to begin on June 8 at the earliest.

May 26

• Indian jeweler Titan Company reopens stores outside containment zones, with the retailer enabling cashless payment in all stores, sanitizing products, and encouraging customers to make appointments. All mall locations remain closed. Company expects impact on profits, as sales in reopened stores are at 50% of normal levels.

• The July edition of the Oroarezzo jewelry show in Vicenza, Italy, has been scrapped for this year, with the next edition now scheduled to take place in 2021. Organizers have created “Oroarezzo on Stage,” a virtual window into client companies’ creations, which will allow exhibitors to reinforce their online presences and provide visibility on global markets.

• London Diamond Bourse reopens with reduced access to enable it to follow UK guidelines on social distancing (pictured, courtesy London Diamond Bourse).

May 25

• Indian diamond manufacturer Asian Star resumes operations at its factory in Surat. It will begin with a limited workforce, before increasing the numbers gradually when rules ease.

May 24

• Alrosa cuts 2020 production plan, with new forecast of between 28 million and 31 million carats versus previous guidance of around 34 million carats.

• Surat manufacturing sector cleared to resume operations, with 50% of workers in factories and 33% of staff allowed in offices.

• India trade postpones moratorium on rough imports to June 1. The voluntary one-month ban was initially scheduled to begin on May 15, but was pushed off to allow companies to complete outstanding shipments.

• Alrosa selling largest ever volume of rough on its digital tender platform due to pandemic-related restrictions. The miner is offering more than 800 rough diamonds from its 5- to 10-carat batches at the sale, which takes place from May 15 to 29.

May 19

• The Gemological Institute of America (GIA) announces it has reopened its laboratories in Antwerp, Carlsbad, Gaborone, Johannesburg and Tokyo, with modified schedules and limited capacity. See GIA.edu/coronavirus-update for scheduling details at each location.

May 18

• Israel Diamond Exchange announces plans to reopen trading floor on May 24 under new format to ensure it is safe and compliant with government rules.

• Organizers cancel JA New York show summer show scheduled for August 9 to 12; currently planning to hold JA New York Fall from October 25 to 27 at the Jacob K. Javits Convention Center.

• New York Antique Jewelry & Watch Show, scheduled for July 24 to 26, is now canceled. Organizers say they “recognize that late July is simply too soon to collectively gather in large groups.”

• Diamond manufacturer Asian Star says it received special permission to resume partial operations at its facility in the SEEPZ special economic zone in Mumbai. It will observe government guidelines on social distancing, sanitation, hygiene, and transportation arrangements.

May 17

• California-based jeweler Tacori recommences operations, including its stores, artisans and essential services, with new safety measures such as physical distancing.

• Indian authorities allow Mumbai diamond-and-jewelry companies to reopen so they can handle exports, but with 10% of workforce.

• Independent Jewelers Organization cancels conference originally scheduled for July 24 to 28 in Baltimore.

May 10

• Antwerp World Diamond Centre (AWDC) updates support measures provided to the industry during Covid-19 crisis, including compensation of EUR 3,000 for financial losses resulting from the crisis, tax benefits, and protection against seizure and bankruptcy. (See document here.)

• AWDC

announces that shipping is operational between Antwerp and all destinations except India, which is currently still under strict lockdown.

• Jewelers of America announces its second annual National Convention will take place in a virtual forum from May 26 to 28.

• De Beers suspends application process for new sightholder contracts.

• Alrosa says it will temporarily suspend operations at its Aikhal underground mine and Zarya open pit from May 15 due to the decline in demand and sales; will reconsider its group production plan at its board meeting later in May.

May 4

• Antwerp’s four diamond trading halls will reopen on May 11, the Antwerp World Diamond Centre confirms.

• Jewelers of America makes its certification program available online at reduced price of $25 per exam.

• The Gemological institute of America (GIA) makes its Essentials course free of charge, with start dates until June 29.

April 30

• Belgian government gives green light to resumption of business activity on May 4. Antwerp World Diamond Centre (AWDC) publishes guidelines for diamond companies planning to restart.

• De Beers allows sightholders to defer their full allocations at sight scheduled to begin May 4. Few expected to attend due to travel restrictions.

• Alrosa offers maximum flexibility in its supply during May, allowing clients to “stay off the trade if they want.” Deferred goods will be offered during future sales periods, the company said.

• The Atlanta Jewelry Show has postponed its 2020 fall edition, which will now take place from October 24 to 25.

April 29

• De Beers donates $200,000 across the four countries in which it mines – Botswana, Canada, Namibia and South Africa – to assist women’s shelters and support organisations. The donation is a response to an increase in gender-based violence resulting from the Covid-19 situation, the company said.

• Bharat Diamond Bourse to host digital show instead of Bharat Diamond Week that was scheduled to take place in early August. The dates for Bharat Diamond Week – Digital have yet to be announced.

April 28

• Belgium’s polished imports slump 71% and exports drop 51% in March, giving a first glimpse at the decline in trading levels during the month when the coronavirus spread globally.

• Crisil projects 32% decline in India’s diamond sales for the fiscal year that will end March 31, 2021.

• Sarine, which makes equipment used in diamond manufacturing, anticipates heavy impact on revenue in second and third quarters due to lockdown of Indian cutting sector; furloughs 20% of staff in Israel and places others on paid leave.

• Istanbul Jewelry Show March edition, which was planned to run from 18-21 June 2020, has been postponed until 25-28 March 2021.

• Jewelers Mutual Group makes its online learning platform, JM University (jmuniversity.com), available to the industry for free.

April 26

• Gem Diamonds to resume operations at Letšeng mine on April 27, after receiving clearance from the Lesotho government, even though the lockdown there continues through May 5.

• Cibjo to host webinar on 'Strategies for Exiting the Lockdown' on April 30 (9am EST). Register here.

April 23

• Dominion Diamond Mines files for and receives insolvency protection, amid high debt and closures associated with the coronavirus pandemic.

• India’s leading diamond-trade organizations call on members to stop importing rough for at least a month from May 15, to prevent an oversupply and ensure banks maintain their credit to the sector.

• De Beers cuts 2020 production forecast to between 25 million and 27 million carats, compared to the 32 million to 34 million in its original projection, as its mines in southern Africa were placed on care and maintenance during the pandemic.

April 22

• The British Allied Trades Federation, an umbrella group of UK industry bodies, furloughs some of its staff members, including Simon Forrester, CEO of the National Association of Jewellers.

• Reed Jewelry Group calls off JCK Las Vegas and Luxury shows; to host remote virtual event in the summer.

April 21

• De Beers and parent Anglo American contribute $3 million to Covid-19 relief effort in South Africa. De Beers earlier donated $2.5 million to causes across Botswana and Namibia.

April 20

• Stuller recommences manufacturing and other services and begins shipping orders again. Company lays off small number of workers on a permanent basis.
April 19

• Gubelin Gem Lab allows clients to set their own fee for its services until the end of May. Additional money made through payments above Gubelin’s regular tariff price will be forwarded to Médecins Sans Frontières, an independent medical humanitarian organisation. Gubelin will match that contribution with a donation to the same cause.

• The Fancy Color Research Foundation has insufficient data to publish the Fancy Color Diamond Index for the first quarter due to the Covid-19 lockdown. It marks the first time the index has not been published since its inception in 2015.

• De Beers confirms that its Debswana mining operations in Botswana were placed on care and maintenance on April 2 as the country implemented a 28-day lockdown.

• Lucapa Diamond company says it is working with the authorities in Angola to recommence normal mining activities at the Lulo mine. Its other asset, the Mothae mine in Lesotho, remains on care and maintenance.

• The World Jewellery Confederation (CIBJO) makes its seven “Blue Books” available for free download (here). The books are CIBJO’s definitive sets of grading standards and nomenclature for diamonds, colored gemstones, pearls, coral, precious metals and gemological laboratories, and also responsible sourcing practices. The group also hosts gemology webinar on Friday, April 17 at 10:00 a.m. London and 12:00 p.m. New York.

• Gibb River Diamonds, which has mining operations in Australia, cuts salaries by half; says it is well positioned to weather Covid-19 crisis since it is debt-free.

April 15

• Italian Exhibition Group (IEG) reschedules Oroarezzo 2020 jewelry show to July 18 to 21.

• Stornoway Diamonds extends care-and-maintenance period at Renard mine due to weak diamond market and prices, despite Quebec government lifting its lockdown order on mining operations.

• Plumb Club introduces new podcast series (https://plumbclub.com/resources/). In the first, Severine Ferrari, editor in chief and founder of Engagement 101, discusses “The New Bridal Consumer — How You Can Best Help!”. Kevin Reilly, vice president of Platinum Guild International, USA, hosts “Cracking the Code on Customer Experience with Platinum”.

April 9

• South Africa extends lockdown to end of April.

• The Graff Foundation donates $1 million to the Covid-19 Solidarity Response Fund in support of the World Health Organization.

• Firestone Diamonds extends Liqhobong mine shutdown, with uncertainty over when diamond markets will be strong enough again to support the operation.

April 8

• Organizers reschedule Hong Kong International Jewellery Show for August 3 to 6. Initially scheduled to take place in march, the show was postponed to May be, 2020 at AWE

• Diamond manufacturer Dimexon is using its facility in Coimbatore, India to provide meals to the local community and the under-privileged during the lockdown. The company’s engineers are also helping design and manufacture low-cost medical ventilators and other support devices to be distributed to local hospitals and health institutions.

• Alrosa donates RUB 166 million ($2.3 million) to help provide medical supplies and equipment in the Yakutia region in which it operates.

• Kareevlei mine in South Africa to remain on care and maintenance until the market recovers sufficiently for the operation to be cash flow positive on a monthly basis, owner Blue Rock Diamonds says.

April 7

• De Beers contributes $2.5 million to aid the Covid-19 response in Botswana and Namibia; converts 3D printers that usually develop parts for synthetic-diamond detection machines at its UK technology center to make headbands for face shields worn by health-care staff.

• UK jewelry trade organizations establish the Jeweller Support Network, designed to assist independent and family-owned retailers, designer-makers and trade professionals struggling with the ramifications of Covid-19. (Details at www.naj.co.uk/jewellersupportnetwork)

• The Jewelers Board of Trade (JBT) to issue two parallel credit ratings for companies to reflect the impact of the shutdown on cash flow: one rating will use JBT’s its usual methods, demonstrating the realities of Covid-19, while the second will show the situation before the downturn.

• Jewelry retailer James Avery to furlough many of their manufacturing and retail associates, along with select corporate staff, and reduced pay for all executive and management teams.

• Rio Tinto says operations continue at Argyle mine in Australia and Diavik in Canada. Argyle on course to permanently shut down planned toward end of 2020.

April 6

• The Tiffany & Co. Foundation allocates $750,000 to the Covid-19 Solidarity Response Fund of the World Health Organization, and $250,000 to The New York Community Trust’s NYC Covid-19 Response & Impact Fund.

• Belgium government offers discounted tax rate to companies making advance payments in the third and fourth quarter, with due date on 10 October 2020 and 20 December 2020; offers compensation of EUR 3,000 for every self-employed person that can prove they’ve lost at least 60% year on year in turnover during the period March 14 to April 30.

• World Federation of Diamond Bourses (WFDB) adopts Get Diamonds as its official trading platform.

• Phillips postpones Hong Kong Jewels and Jadeite auction from a May 31 start to the week of July 5.

April 5

• Vicenzaoro plans to go ahead with its show from September 5 to 9. The theme, “human touch,” will emphasize creativity, craftsmanship, and the industry’s ethical and sustainable credentials, among other trends. The fair is an opportunity for the trade to restart following the crisis, organizers said.

• The publicly owned Flemish Investment Fund will guarantee loans used to pay debts caused by the coronavirus crisis. Companies unable to obtain financing because of a lack of guarantees can have 75% of their contracts covered by the Flemish government, in exchange for a one-off premium of 0.25% instead of the normal 0.5%.

• Alrosa CEO Sergey Ivanov sold half his shares in the company valued at RUB 18.5 million ($241,670), which he will donate to help stem the spread of the coronavirus in the Mirny district of Yakutia.

• The American Gem Society (AGS) announces its first-ever virtual conference, which will take place April 27 to 28 and is free to all AGS members.

• Hong Kong-based jeweler Tse Sui Luen (TSL) warned it will report a loss of at least HKD 80 million ($10.3 million) for the year ending March 31. The slowdown results from a number of factors including the US-China trade war, prolonged social unrest in Hong Kong, and the outbreak of Covid-19.

April 2

• Manufacturing Jewelers & Suppliers of America (MJSA) launches series of free webinars focused on helping businesses navigate the current disruptions and future impacts caused by the Covid-19 crisis. (https://mjsa.org/eventsprograms/mjsa_webinars)

• Botswana begins 28-day lockdown.

• Alrosa allows clients to defer 100% of goods at contract sale scheduled for April 6 to 10.

• Lucapa Diamond Company has whittled down activities at its Lulo mine in Angola to essential operations amid a government lockdown on the country.

April 1

• Signet Jewelers temporarily lays off workers to cut costs during the crisis.

• Jewelers of America (JA), the Jewelers Vigilence Committee (JVC) and the Women's Jewelry Association (WJA) join 90 other retail groups in appeal to White House to help small retailers obtain financial aid during the pandemic

• GIA closes labs in Carlsbad, New York, Antwerp, Johannesburg, Mumbai and Surat, and suspends operations at various gemological schools.

• De Beers allows sightholders to defer taking all rough supply at sight scheduled for March 30 to April 3.

• Gem Diamonds places Letšeng mine on temporary care and maintenance.

March 25

• Petra Diamonds suspends its South Africa operations, including the Finsch, Cullinan and Koffiefontein mines, as South Africa enforces a 21-day lockdown from March 26.

• Firestone Diamonds and Lucapa Diamond Company place Lesotho operations on hold as they rely on supplies from South Africa.

• India’s government raises minimum value of a default that could trigger bankruptcy proceedings for small- and medium-sizes businesses to INR 10 million ($131,160) from INR 100,000 ($1,310). Implements other concessions.

• Christie’s reschedules April New York Magnificent Jewels auction on June 11, and Geneva sale, slated for May, for July 1.

March 24

• India announces 21-day lockdown.

• The Jewelers Vigilance Committee (JVC) launches dedicated website to provide the jewelry community access to helpful legal resources and breaking news to ensure the survival of their businesses and stay healthy and safe during the pandemic. (see http://jvclegal.org/covid19).

• The Diamond Producers Association (DPA) introduces e-learning platform through which retailers can educate staff while stores are closed and employees are at home. (Gain access here).

• Watches of Switzerland closes all locations for its brands in both the US and the UK.

• Michael Hill announces it will shut its stores in Australia and New Zealand for an indefinite period; defers dividend payment.

• The Surat diamond manufacturing industry shuts down until March 31 in line with lockdown enforced by Gujarat state government. The Bharat Diamond Bourse in Mumbai also closes following similar measures in Maharashtra state.

• Signet Jewelers says it will not issue a forecast for the first quarter of its 2021 fiscal year in its earnings release scheduled for March 26, as it weighs the effects of the pandemic on its retail operations.

• Macy’s withdraws its guidance for 2020, without providing an updated outlook; suspends its quarterly dividend payout beginning in the second quarter.

March 23

• Michael Hill will temporarily close all its Canadian stores, while locations in Australia and New Zealand currently remain open. The jewelry retailer said it will not provide revenue guidance for the fiscal year ending June 30, as it has not fully assessed the impact of the virus on its sales.

• Organizer of Hong Kong show, scheduled for May, suspends preparations as visitors to the city must go into quarantine for 14 days.

• The London Diamond Bourse (LDB) will close from March 25 as the coronavirus spreads in the UK.

March 22

• Signet Jewelers announces all its stores will remain closed across its North America banners, including Kay Jewelers, Zales, Jared, James Allen, Peoples and Piercing Pagoda.

• Luxury group Kering sees demand starting to recover in China; expects revenue to decline 13% to 14% in the first quarter.

• Dominion Diamond Mines suspends operations at Ekati mine.

• Gem Certification & Assurance Lab (GCAL) announces it will close its lab and offices effective March 23; all non-gemological work to continue.

• Baselworld cancels fair scheduled for April 30 to May 5, reschedules for January 28 to February 2.

February 29

• US records first coronavirus death and announces highest travel warning for areas in Italy, South Korea and Iran. (The New York Times)

February 27

• Watches & Wonders Geneva show, which was due to take place from April 25 to 29, is canceled.

February 26

• De Beers announces provisions to let sightholders defer Chinese goods at upcoming February sight as coronavirus raises concerns about rise in polished inventory in the midstream.

February 23

• Italy sees surge in coronavirus cases. (The New York Times)

February 17

• NRF warns the coronavirus could reach the US and affect growth in February.

February 12

• India’s Gem & Jewellery Export Promotion Council (GJEPC) asks banks and government to allow diamond and jewelry suppliers to China and Hong Kong more time to pay back loans connected with overseas shipments.

• Chow Tai Fook says it suspended operations at more than 40 locations in Hong Kong and Macau due to the rise of the coronavirus epidemic.

February 11

• WHO proposes official name for disease the coronavirus causes: Covid-19 (coronavirus disease 2019). (The New York Times)

February 4

• Hong Kong shows, scheduled to begin on March 2, postponed and rescheduled for May 18 to 21.

February 2

• First coronavirus death reported outside China. (The New York Times)

January 31

• Trump administration restricts travel from China. (The New York Times)

January 30

• WHO declares global health emergency. (The New York Times)

January 23

• Wuhan is cut off by Chinese authorities. (The New York Times)

January 20

• First confirmed cases outside of China, reported in Japan, South Korea and Thailand. US citizen returns to Washington state from Wuhan with symptoms. (The New York Times)

January 11

• China reports first death from an illness caused by the virus. (The New York Times)

December 31

• Authorities in China confirm they’re treating dozens of cases of pneumonia of unknown cause, mainly in city of Wuhan. Days later, researchers identify new virus and officials were monitoring its spread. (The New York Times)